Infosys, India’s second-largest IT services exporter led by CEO Vishal Sikka, is likely to dole out salary increases in the range of 15-20% for the top performers in FY16 though the average hike for its India employees will be around 6.5%, as announced by the firm recently on its internal website.
The compensation review will be rolled out in 55 countries effective April 1, 2015.
Infosys is keen on retaining employees in the high performing list, especially those who are specialised in niche and advanced technology skills, sources familiar with the matter said. The IT major has unveiled numerous employee engagement measures to retain the top performers, which also include a faster career progression path.
The salary increases announced by Infosys for FY16 have almost been at the same level as the current fiscal. For FY15, it had provided an average increase in the range of 6-8%. The company’s headcount at the end of the December quarter stood at 1,69,638. The onsite employees are likely to get an increase of 2% in FY16.
During the recent Citi India investor conference, Infosys chief operating officer U B Pravin Rao commented on the wages situation, “I think given the supply/demand dynamics, the salary inflation will still continue even though the industry growth may fluctuate. The kind of salary inflation that we are looking at 8-10% or 6-8%, it varies from year-to-year, so that will likely to continue in the foreseeable future, we do not see that moving away from that piece anyway.”
Infosys has witnessed certain churn in its employee headcount with attrition rates still remaining high at 20.4%. The expectation was that with Vishal Sikka taking over as the new CEO, it would be a more liberal on the salary front.
Sikka has made employee retention as of his top priorities and also promoted over 5,000 employees besides doling out expensive gifts for the top performers.
At the same time, there are another set of employees in Infosys who will set to receive a double bonanza. All senior level employees with the designation of associate vice-president and above are eligible for a double bonus in excess of $100,000.